Abu, a debtor to Dania, owed ₦10,500 at the start of the month. He paid cash of ₦40,005 during the month and received additional credit sales of ₦20,000.Usi...

Abu, a debtor to Dania, owed ₦10,500 at the start of the month. He paid cash of ₦40,005 during the month and received additional credit sales of ₦20,000.Using the information, Abu's balance at the end of the month is

Answer Details

To calculate Abu's balance at the end of the month, we need to add up all the cash he paid and all the credit he received, and then subtract that total from the amount he owed at the start of the month. First, Abu paid ₦40,005 in cash, which we can subtract from the amount he owed: ₦10,500 - ₦40,005 = ₦-29,505 This means that Abu has overpaid by ₦29,505. However, we also need to consider the additional credit sales of ₦20,000 that Abu received during the month. Adding the credit to the overpaid amount: ₦29,505 + ₦20,000 = ₦49,505 So, Abu's balance at the end of the month is ₦49,505 credit. Therefore, the correct answer is ₦30,505 cr.